That wont work. Seems there is no way currently to clear that history unless you root the device and use a cache cleaner for rooted devices.

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i tried it for kicks, didn't work. swype still shows up

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Happy to report that there is a way to clear market history
Download "cashemate" from the market install hit the menue button go to settings. Last option is Data click on it, select market history, go back and hit the circle clear, and tada you just cleared the invincible market history.
One note, you have to be rooted and have SU permissions.
Enjoy

Happy to report that there is a way to clear market history
Download "cashemate" from the market install hit the menue button go to settings. Last option is Data click on it, select market history, go back and hit the circle clear, and tada you just cleared the invincible market history.
One note, you have to be rooted and have SU permissions.
Enjoy